Cipla: Stock About to EXPLODE (or CRASH)? 3 Signs You NEED to See!

Market Overview: Positive Momentum on Dalal Street

Indian stock markets kicked off the week on a strong note, with key indices closing higher. Optimism surrounding the upcoming budget, sustained foreign institutional investor (FII) inflows, robust IT earnings, and a surge in PSU banking stocks contributed to the bullish sentiment.

• BSE Sensex gained 145.52 points (0.18%), closing at 80,664.86.
• Nifty50 rose 84.55 points (0.35%), settling at 24,586.70.

Among the large-cap stocks attracting trader interest are Asian Paints Ltd, Bajaj Auto Ltd, and Cipla Ltd. Jigar S Patel, Senior Manager and Technical Research Analyst at Anand Rathi Shares and Stock Brokers, provides insights on these stocks ahead of Tuesday’s session.

Asian Paints: Buy Above ₹2,950, Target ₹3,150

Asian Paints has broken past its crucial resistance level of ₹2,940 and is currently trading around ₹2,950. The breakout, supported by significant trading volume, indicates potential for further upside.

• Technical Indicators:
  • The Daily MACD has formed a bullish crossover above the zero line, signaling a positive trend.
• Investment Strategy:
  • Consider buying in the ₹2,950-₹2,960 range.
  • Target price: ₹3,150.
  • Stop-loss: ₹2,855 (on a daily closing basis).

Bajaj Auto: Buy ₹9,650-₹9,675, Target ₹10,000

Bajaj Auto has been consolidating within the ₹9,365-₹9,666 range but has now registered a clear breakout with strong trading volume. The Daily RSI rebounding from the 50 level further reinforces the bullish outlook.

• Investment Strategy:
  • Enter long positions within ₹9,650-₹9,675.
  • Target price: ₹10,000.
  • Stop-loss: ₹9,488 (on a daily closing basis).

Cipla: Hold or Buy Above ₹1,535

Cipla is currently trading within a ₹1,485-₹1,535 range, reflecting a phase of consolidation. In the last session, it briefly touched ₹1,535 but failed to sustain above this level, indicating strong resistance.

• Technical Indicators:
  • The appearance of a shooting star candlestick pattern on the daily chart suggests potential reversal or weakening of the ongoing uptrend.
• Investment Strategy:
  • Existing holders may consider booking profits within the ₹1,500-₹1,525 range.
  • New investors should wait for a daily close above ₹1,535 before entering.
  • If Cipla breaks above ₹1,535, the target can be set at ₹1,600.
  • Stop-loss: ₹1,499 (on a daily closing basis).

Conclusion: While Asian Paints and Bajaj Auto present buying opportunities based on technical indicators, Cipla requires caution—existing holders may book profits, while new investors should wait for a confirmed breakout. Market sentiment remains optimistic, driven by budget expectations and strong FII inflows. Traders should closely monitor key resistance and support levels before making fresh entries. Risk management through proper stop-loss placement is crucial to safeguard investments. Volatility may persist, so staying updated with market trends and news is essential. A disciplined approach with well-defined entry and exit points can enhance profitability.